The cash-and-share transaction will allow iRobot to exit the telehealth technology developer eight years after it paid $6m for a minority stake.
Virtual care provider Teladoc Health agreed on Sunday to acquire US-based telehealth services provider InTouch Health for $600m in a deal that will allow domestic robotics technology producer iRobot to exit.
The transaction will involve Teladoc paying $150m in cash for the company together with $450m in shares. InTouch had raised about $93m in funding pre-acquisition, according to press releases and securities filings.
Founded in 2002, InTouch combines a cloud network with dedicated telehealth technology that allows healthcare systems to diversify their care. It has partnerships in place with about 450 care providers worldwide and expects to increase full-year revenue about 35% to $80m for 2019.
The company received $6m from iRobot in 2012 as part of the expansion of an existing collaboration deal. Its earlier backers included Beringea’s InvestCare Partners fund, Galen Partners, Acacia Venture Partners, Twenty One East Victoria Investments and Cathedral Pointe Ventures.
Teladoc CEO Jason Gorevic said: “Today marks a bold leap forward in Teladoc Health’s mission to transform how high-quality healthcare is accessed and experienced, making virtual care available for patients with even the most critical care needs.
“Bringing these companies together will make Teladoc Health the clear virtual care leader across every front door of healthcare, further accelerating the adoption and impact of virtual care for millions of people around the world.”
Teladoc employed Lazard as financial adviser and Latham & Watkins as legal adviser on the transaction. JP Morgan was financial adviser for InTouch while Wilson Sonsini Goodrich & Rosati was legal adviser.
